it-gov and erp process

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IT Governance and theERP Process

Fred SiffVice-President & Chief Information Officer,

Professor of Information Systems

University of Cincinnati

F.H. Siff, 2005

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Assembling Packets from the

Campus Ether

Listen and hear

Develop coherenceGarbled messages

lead to failed

executive leadership


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Five Ideas

The New Kid on the Block

What is Governance and Why Is ItEssential?

Who Cares About IT in the Business?

Governance Beyond ERP Selection Some Keys to Effective Governance


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The New Kid in the Executive SuiteGetting IT Right, Harvard Business Review,

Feld & Stoddard, February 2004

Of all the members of the Executive

Committee, the CIO is the least understood

many companies just kick the kid out of

the house.


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The New Kid in the Executive SuiteManage to a mature business model,

not to the next crisis

Do (only?) what your organization can dowell

Sound resource management is essential

A cost center with a P&L statement

A mature business model mustinclude governance


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What is Governance? Who makes decisions, why, and how

Academic organizational culture largely defined

by issues of governance IT is new to the process

IT is too important to leave to IT folks

You need theirvoice

Just IT: myopic and ill-Informed

Just IT: nobody else cares


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What is Governance Why

Successful business transformation

starts with business needs and priorities

involves the business process owners in

significant ways

An antidote for anarchy?


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What is Governance Why

Practical: prioritize the deployment of limited

resources

Reflect community

Not forbuy-in

Involvement of informed users leads to better

ideas, products & decisionsBut fit the larger organizational culture


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What is Governance WhyThe business agenda defines issues

IT-Business Alignment

There are no IT projectsonly business

projects

The Next Great Thingin IT is not in IT, it is

in the business

All of this applies to the ERP Process


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Who Cares About IT in the Business? Everyone.

Im IT. Youre IT.

A Higher Ed institution is not Wal-Mart Credibility is the key to organizational

involvement

...Deliver Deliver Deliver

Committees recommend

Officers and administrators make decisions


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Governance and the ERP Process Make the business case, not the IT case

Build the system for a client

Not the power users, but all users

IT may be the architect/construction engineer,

but the client is the owner/occupant.

Identify & empower an appropriate sponsor

to whom IT is secondary, even subservient a

business partner


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Governance and the ERP ProcessWhat are the key decisions?

Need, sponsors, resources

Specs and selection

Blueprint/design and realization

Not hardly


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Governance beyond ERP SelectionAt UC, we have a Core Systems Matrix,

Allocated funds, core systems by year, projected to

10 yearsManaged by the Institutional Management

Committee, within the overall governance

structure


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Some Keys to Effective Governance

Vision = Execution

Deliver Deliver Deliver


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Involve the right people matched tothe right issues

Executive involvement critical


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Simplified UC IT Governance

Structure (February 2004)

InfrastructureInfrastructure

TechnologyTechnology

PlanningPlanning

CommitteeCommittee

InstitutionalInstitutional

ManagementManagement

PlanningPlanning

CommitteeCommittee

AcademicAcademic

TecTechnolhnologyogy

PlanningPlanning

CommitteeCommittee

--ECAR Case Study 4, 2004, Using an IT Governance Structure to Achieve Alignment at the University of Cincinnati.


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Involve the right people matched to theright issues

Executive involvement critical

Thought leaders

Strong recommendations -- empower


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Involve the community

Using an IT Governance Structure to

Achieve Alignment at the University ofCincinnati, ECAR Case Study 4, 2004


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Conclusion

The IT Governance

structure is one

mechanism for re-assembling the

packets and

enabling the

executive function of

IT to be conducted.

The ERP decision

(which really isnt) isjust one issue to be

treated within the IT

Governance

structure.

it-gov and erp process

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